New York sues prediction market Polymarket, calling it an unlicensed gambling operation that puts residents at risk

New York filed suit against Polymarket on Thursday, asking a state court to bar the prediction-market platform from doing business there and to force it to pay fines and refund users, on grounds that it has been taking bets without the gaming license state law requires. The action extends a campaign New York has waged against similar betting platforms, including Kalshi, Coinbase and Gemini, as officials try to tighten control over apps that let customers wager on outcomes ranging from sports and weather to elections and technology trends. Polymarket and other prediction-market operators counter that state gambling law does not apply to them because they answer instead to federal oversight from the Commodity Futures Trading Commission, which did not respond to a request for comment, according to PBS NewsHour.

Governor Kathy Hochul framed the case as a matter of public safety, saying in a statement that Polymarket's unlicensed activity endangers New Yorkers, particularly minors who face heightened risk from problem gambling. Polymarket Chief Legal Officer Neal Kumar responded that the company would "fight for our users," noting it began in a small New York City apartment and now employs more than 350 people in the state, adding that it intends to remain there.

The platforms distinguish their business model from conventional gambling, describing it as peer-to-peer trading akin to stock markets: users buy and sell contracts pegged to how likely an event is to occur, with prices set by trading activity and the company collecting only a transaction fee.

Summarized by PolitiKool from PBS NewsHour’s reporting. Read the full story at PBS NewsHour →